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Production Increases Expected At CNRL’s Horizon Mine Following Project Completion, Cenovus Post $69M Net Loss In Third Quarter

Fort McMurray, AB, Canada / MIX 103.7
Production Increases Expected At CNRL's Horizon Mine Following Project Completion, Cenovus Post $69M Net Loss In Third Quarter

Cenovus's Christina Lake project in northern Alberta uses steam-assisted gravity drainage (SAGD) to produce oil // Photo courtesy of Cenovus

Construction is officially complete on a Canadian Natural Resources Limited mine north of Fort McMurray.

In its third-quarter update Thursday, CNRL says Horizon oilsands 80,000 bpd Phase 3 expansion is done – marking the company’s final step to a “long life low decline asset base”.

“Optimization and reliability work on the fractionation tower, the vacuum distillate unit and diluent recovery unit furnaces were also
successfully completed during the turnaround on time and on budget,” said Chief Operating Officer, Tim McKay.

With the completion of the turnaround, production is expected to ramp up through this month and next with targeted volumes for December to be around 240, 000 bpd.

Meanwhile, in the third quarter at Horizon, production reached 156,465 bpd a decrease by 18 per cent from the second quarter, which the Calgary-company notes is due to Horizon beginning the planned turnaround activities and the Phase 3 expansion tie-in on September 11.

Overall, CNRL posted net earnings of $684 million last quarter compared to a net loss of $326 million the same quarter last year.

Cenovus Post $69M Net Loss In Third Quarter

Cenovus Energy recorded a net loss of $69 million in the third quarter.

Despite the loss, this is an improvement from the third quarter of 2016 when the Calgary-based company posted a net loss of $251 million.

Since Cenovus acquired most of the Canadian assets of Houston-based Conoco Phillips in May, they’ve been selling non-core assets to reduce its debt load.

Meanwhile, production at Foster Creek and Christina Lake, which is located about 150 km southwest of Fort McMurray, rose to 362,494 bpd in the third quarter. That’s an increase of 136 per cent from the same time last year.

Cenovus says change is mainly due to the acquisition and the incremental volumes from Foster Creek phase G and Christina Lake phase F, both of which began producing in the second half of 2016.

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